Economic Review – November

A lot can change in ten years. Promotions, pay rises, buying a home, starting a family or simply taking on new responsibilities, can all dramatically shift your financial needs. While life rarely stands still, many people’s money habits do.  New research1 reveals that despite experiencing major life changes over the past decade, nearly a third (32%) of UK adults have failed to update their savings, pensions or protection plans accordingly – that’s around 18 million people.  The cost of financial inertia  The findings point to a growing disconnect between people’s current lives and how they manage their money. Despite rising incomes, a third of adults say they are saving no more than they did ten years ago,

Recent HMRC data shows that Inheritance Tax (IHT) receipts rose to £4.3bn during the period from April to September 2024, a £400m increase on the same period the previous year. With over a quarter (27%) of 18 to 34-year olds (1.1m people) holding out for an inheritance before going ahead with major life events and 12% of UK adults regifting to their children, grandchildren, or other family members, here’s a reminder of the vital gifting numbers to gen up on before the end of the tax year: While these are relatively small sums, you should use these up where possible without compromising your own financial security, to gradually reduce your